Bitcoin News Today: Bolivia and El Salvador Strengthen Crypto Partnership to Modernize Financial Infrastructure

Bolivia has positioned cryptocurrency as a “reliable alternative” to traditional fiat currency through a newly signed cooperation agreement with El Salvador, signaling a shift in the country’s financial strategy amid economic challenges. The collaboration, formalized by the Central Bank of Bolivia and El Salvador’s National Commission of Digital Assets, aims to enhance policy development, share crypto intelligence tools, and modernize financial infrastructure [1]. The agreement is part of Bolivia’s broader pro-crypto pivot, which began in June 2024 when the country lifted its longstanding crypto ban, enabling banks to process Bitcoin and stablecoin transactions.

Since the policy change, crypto adoption in Bolivia has shown rapid growth. Three months after the ban was lifted, the Central Bank of Bolivia reported a crypto trading volume of $46.8 million — an average of $15.6 million per month, doubling the monthly average from the prior 18 months. By June 30, 2025, total crypto volume had reached $294 million [1]. The shift is being driven by Bolivians seeking alternatives to their domestic currency amid a severe foreign exchange crisis. The country’s foreign exchange reserves have plummeted from $12.7 billion in July 2014 to $165 million in April 2025, according to Trading Economics data [1]. In response, some Bolivian businesses have started pricing basic goods in Tether (USDT), while state-owned oil and gas firms have begun accepting crypto for fuel imports.

The partnership with El Salvador, the first country to make Bitcoin legal tender in 2021, is expected to offer Bolivia valuable insights into the regulatory and economic implications of crypto adoption. The two nations will collaborate on policy development and the use of blockchain-based solutions to improve financial inclusion and cross-border payments [1]. The agreement, which took effect immediately, will be overseen by Bolivia’s Acting Central Bank President Edwin Rojas Ulo and El Salvador’s President of the CNAD, Juan Carlos Reyes García [1].

Bolivia’s interest in crypto is also seen as part of a broader regional trend where governments are exploring digital assets as tools to mitigate inflation and reduce reliance on the U.S. dollar. The timing of the partnership also aligns with Bolivia’s upcoming general election on August 17, where many hope for a shift in leadership after 19 years of socialist governance [1]. If no candidate secures a majority, a runoff will be held on October 19, with Polymarket assigning only a 5% chance of a first-round winner [1].

While Bolivia has not yet declared Bitcoin as legal tender, the Central Bank has expressed openness to using blockchain for international trade and remittances. The partnership with El Salvador could provide a framework for developing regulatory clarity and technical infrastructure that supports broader crypto adoption. As institutions and corporations globally begin to integrate blockchain into financial systems, such regional cooperation may serve as a model for future international efforts in the digital economy [2].

Source:

[1] Cointelegraph (2025-07-23), https://cointelegraph.com/news/bolivia-calls-crypto-reliable-alternative-to-fiat-in-el-salvador-partnership

[2] FinchTrade (2025-07-23), https://finchtrade.com/